The number of Americans initially applying for unemployment aid last week dropped after rising in a week earlier, a fresh positive sign for the labor market, the Labor Department reported Thursday.
The department said the advance figure for seasonally adjusted initial claims for jobless benefits was 372,000 in the week ending Dec. 31, a drop of 15,000 from the previous week's revised figure.
The fact that fewer than 375,000 people applying for aid consistently signals that hiring is strong enough to lower the unemployment rate. ' Meanwhile, the four-week moving average, which more closely watched claims figure, continued to dip to 373,250, the lowest level since June 2008.
Economists say that the overall trend of jobless claims is positive and signals the hiring may pick up in the new year.
The advance figure for seasonally adjusted insured unemployment during the week ending Dec. 24 was 3.595 million, a drop of 22,000 from one week earlier.
While there is more evidence for an improving labor market, few believe it will return to a normal level in the short term due to relatively weak economic growth.
The U.S. economic growth rate was downwardly revised to 1.8 percent in the third quarter last year due to the decline of consumer spending, the Commerce Department reported last week.
The weekly figures of jobless benefits application reflect the level of layoffs and indicate real-time condition of the American job market. |